Remained below 2%. In all previous years, population dataset surveys showed that inflation expectations were somewhere around 2.5-3%. Everywhere, in all countries of the world, people estimate inflation higher than in statistical.
reports. But in the US, there was a very small
deviation. And there, the expectations of the population were really, one might say, “anchored” near the target. Now these expectations have begun to creep up: inflation has jumped to 5%, inflation expectations – to 4%, but they are still lower than the current inflation.
At the same time, the Fed is already
a little worried and says that if it sees that inflation expectations continue to grow strongly, it will begin to react. Now, with such a sharp surge in we created hari the robot inflation, “anchored” expectations allow them to keep the rate around 0. Why can they afford this, but we cannot? Because our inflation expectations are much higher, trust in our policy is more limited, and this unwinds the inflation agb directory spiral: that is, if you expect prices to be significantly higher tomorrow than today, you go buy. If inflation expectations are moderate, then you can ignore local inflation spikes.